Tanzania Grants Licenses for Mineral Sands Mining in Handeni and Metal Refining in Kahama

Licenses for Mineral Sands Mining in Handeni and Metal Refining in Kahama

Tanzania’s Ministry of Minerals has granted licenses for two significant projects: mineral sand mining in Handeni District in the Tanga Region, and the establishment of a metal refining plant in Kahama in the Shinyanga Region.

During a formal ceremony held in Dodoma on 21st March 2024, The Minister of Minerals, Hon. Anthony Mavunde, officiated the handover of licenses to Nyati Mineral Sands Limited for the mineral sands mining project and to Tembo Nickel Refining Company Limited for the metal refining plant.

The mineral sand mining project is set to be located in the Tajiri area of Handeni District, where extensive reserves have been identified.

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Estimates suggest the presence of 268 million tons of heavy mineral sands, including 74 million tons of proven reserves. The project is expected to significantly contribute to government revenue through taxes, levies, and dividends.

Additionally, the metal refining plant, to be established in Kahama, Shinyanga Region, will address the challenge of exporting mineral concentrates abroad for refining.

This initiative is crucial for value addition within the country, ensuring higher profits and economic benefits.

Nyati Mineral Sands Limited, in collaboration with Strandline Resources Limited of Australia, will spearhead the mineral sands mining project. The establishment of the metal refining plant falls under the jurisdiction of Tembo Nickel Refining Company Limited, a subsidiary of Tembo Nickel Corporation Limited.

This license is for the refining of nickel, copper, and cobalt minerals from the Kabanga Nickel Project, located near the former Buzwagi Gold Mine of Barrick Gold in Kahama.

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The Ministry of Minerals explains that these projects mark a significant step forward for Tanzania’s mining sector, aligning with the government’s vision for economic growth and industrialization. They are expected to create employment opportunities, enhance local economies, and contribute to the overall development of the country’s natural resources sector.

The Nyati and Kabanga Mining Projects

The Nyati mining project is located within the Lake Victoria Goldfiel, an established mining region with several multi-billion-ounce gold deposits.

The project is located directly northwest of and adjacent to Barrick’s Bulyanhulu Gold Mine, in the Sukuma land Greenstone belt that hosts the gold deposits of the Lake Victoria Goldfields.

The Kabanga Nickel Project, situated in northwestern Tanzania, is believed to hold one of the world’s largest undeveloped high-grade nickel sulfide reserves.

The Kahama Metal Refining Plant is approximately 340 kilometers southwest of Kabanga.

Want to know more about Mining in Tanzania? Our free overview of the Tanzania Business and Investment Guide 2026 covers Mining, plus key sectors and investment opportunities. The complete 141-page edition includes policies, taxation, key regulations, full macroeconomic data, and sources, and is also available at no cost upon completion of a short form.

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